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As companies work to ramp up their financial performances, investors eye returns in the form of dividend payouts.
Dividend yield, calculated as a fraction of the annual dividends paid and the stock’s current trading price, rose amid the pandemic as stock valuations of many Canadian companies fell.
But as the country’s gradually recovers from the COVID-19 shock, let’s look at some healthy dividend-paying stocks from across sectors.
Copyright © 2021 Kalkine Media
1. Enbridge Inc (TSX:ENB)
Calgary-based oil and gas producer Enbridge Inc trends high among its peers on the Toronto Stock Exchange. Priced at C$ 46.47 (as of Friday, May 28), the stock’s dividend yield stands at 7.19 per cent, as per TMX.
The company has a quarterly dividend payout cycle, with the last announced dividend, amounting to 83.5 Canadian cents per share, announced on May 13, 2021.
The C$ 94-billion market cap energy sector giant has a price-to-earnings ratio (P/E ratio) of 14.8, with an earnings per share of about C$ 3.13, as per TMX.
Its price-to-book ratio (P/B ratio) is 1.702, highlighting that the stock may currently be trading at a discount to its intrinsic value, which keeps the dividend yield higher. Its debt-to-equity ratio (D/E ratio) stands at 1.23.
2. Pembina Pipeline Corporation (TSX:PPL)
Another key energy sector player, Pembina Pipeline offers a monthly dividend of 21 Canadian cents per share, at a yield of 6.45 per cent. Its next dividend will be paid out on June 15, 2021.
The oil and natural gas company’s scrip closed at C$ 39.05 on Friday, about 13 per cent higher than its value last year.
Pembina Pipeline’s market capitalization is C$ 21.4 billion, while its P/B ratio 1.464, TSX data shows.
The Alberta-based company has a debt-to-equity ratio of 0.81.
3. Extendicare Inc. (TSX:EXE)
Last closed at C$ 8.07 on Friday, the healthcare services provider holds a dividend yield of 5.9 per cent.
The company offers a monthly dividend to its investors, last announced at 4 Canadian cents per share, payable on June 15, 2021.
The healthcare player’s current earnings per share is C$ 0.62, while its P/E ratio is 13, TSX data shows.
Its P/B ratio of 5.64 highlighs that the stock’s price may be in line with its intrinsic value. A stock’s price is inversely proportional to the dividend yield.
Extendicare announced its Q1 earnings early in May. Its revenue from operations during the quarter rose about 19 per cent year-over-year(YoY) to touch C$ 322.4 million.
Its earnings during the same quarter were at C$ 8.3 million.
4. BCE Inc (TSX: BCE)
Telecommunications service provider BCE holds a high dividend yield of 5.8 per cent. Its dividend, last announced at 87.5 Canadian cents per share, is paid out on a quarterly basis.
Its market capitalization is about C$ 54.3 billion, while its earnings per share is C$ 2.72. The Canadian telecom player’s P/E ratio is 22.10, and its P/B ratio is 3.015.
The scrip, with its last close at C$ 60.6 as on Friday, offers about 10.3 per cent returns year-to-date (YTD). The S&P/TSX Composite Index, on the other hand, fell about 3.10 per cent YTD.
BCE’s 5G offering, Bell 5G, was recently expanded to 23 more cities in Canada, making it available to about 35 per cent Canadian telecom services users.
The company plans to extend its services to about 70 percent of the telecom market in Canada.
5. Gibson Energy Inc (TSX:GEI)
Another key energy sector player trending high on the TSX, Gibson Energy’s stock offers a 5.865 per cent dividend yield to its investors.
The last announced dividend, at 35 Canadian cents per share, is payable on June 29, as part of its quarterly dividend payout cycle.
The C$ 3.5-billion market cap oil and gas industry player offers C$ 0.71 earnings per share, as per TSX data.
The P/E ratio of the stock is 33.6, while its P/B ratio is 5.246, highlighting a trading price in line with the stock’s value.
Gibson Energy’s net revenue from operations were about 10 per cent higher YoY at C$ 1.6 billion in Q1 2021. The net income, however, declined YoY to reach C$ 33 million, about 34 per cent lower in the same period last year.
6. Sienna Senior Living Inc (TSX:SIA)
An Ontario-based healthcare and housing service provider, Sienne Senior Living has a dividend yield of 5.792 per cent. The company’s pays out a monthly dividend of 7.8 Canadian cents per share, payable next on June 15.
With a market capitalization of C$ 1.08 billion, the company’s P/B ratio is 2.448, while its D/E ratio of 2.18.
7. Freehold Royalties Ltd (TSX:FRU)
Involved in the business of acquiring and managing oil and gas royalties, Freehold Royalties holds a 5.316 per cent dividend yield.
Its dividend is paid out on a monthly basis, with the last announced dividend of 4 Canadian cents per share set to be paid on June 15.
The oil and gas industry player, with a C$ 1.18-billion market cap, has a P/B ratio of 1.66, indicating a discounted value trading as per its current stock price.
The scrip last closed at C$ 9.03 on Friday, over 73 per cent up YTD.
8. Canadian Utilities Limited (TSX:CU)
Canadian Utilities holds a 5.041 percent dividend yield on its quarterly dividend of 44 Canadian cents per share, payable on June 1.
Its current market capitalization stands at about C$ 9.45 billion, while its earnings per share are C$ 1.26.
Last closed at C$ 34.9 on Friday, the utilities stock has a P/E ratio of 27.7 and a P/B ratio of 1.812.
9. TransAlta Renewables Inc (TSX:RNW)
Operating in the utilities sector, stocks of TransAlta Renewables last closed at C$ 19.3 on Friday, holding a one-year growth of 34.5 per cent.
The C$ 5.15-billion market cap player posts a dividend yield of 4.87. The dividend, last announced at 7.8 Canadian cents per share, is payable every month.
Its earnings per share stand at C$ 0.52, while its P/E ratio is 37.1 and D/E ratio is at 0.41, TSX data shows.
The stock is currently undervalued, evident from its low P/B of 2.403.
10. Great-West Lifeco Inc (TSX:GWO)
Great-West Lifeco is a financial sector player based in Winnipeg, Canada. Its shares last closed at C$ 37.14 on TSX on Friday, about 22.4 per cent up YTD.
The company has a market cap of C$ 34.5 billion, and offers a quarterly dividend of 43.8 Canadian cents a share. Its dividend yield is 4.717 per cent.
Great-West Lifeco has a P/E ratio of 10.4 and a low D/E ratio of 0.44. Its P/B ratio is also low, highlighting a discounted price trading.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
